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No more fed aid for subpoenaed BAC CEO
Bank of America CEO Ken Lewis receives a subpoena from the Attorney General's Office in connection with Merrill Lynch's payment of bonuses. Former Merrill CEO, John Thain, subpoenaed last month, also was questioned by investigators Thursday about bonuses paid in late December, days before Bank of America completed its purchase of New York-based Merrill, according to a person who requested anonymity because of the ongoing nature of the matter. The employee's bonuses were handed before the two companies combined on January 1. The subpoenas were issue by New York Attorney General, Andrew Cuomo, who is investigating whether the bank broke the law by not telling shareholders about Merrill Lynch's losses. Meanwhile, Kenneth Lewis - under pressure from investors concerned that the company may be taken over by the US government - said that he did not need federal assistance and added that "we can make it through this downturn on our own." Lewis, speaking on Friday in a memorandum to employees as his stock price plummeted as much as 36 percent, said that he aimed to "prove cynics and critics wrong" by spurning attempts at nationalization. Bank of America, the biggest US bank by assets, has already received USD 45 billion in bank rescue funds. The bank's trading business is "vastly improved" over the fourth quarter as both high-yield and high-grade corporate debt markets thaw, Lewis said. The Merrill Lynch & Co. acquisition is leading to mandates to raise capital for clients, while the mortgage unit is processing record levels of loans, he said. Bank of America's brand "took a beating in January," then strengthened this month based on customer satisfaction scores, Lewis concluded. Posted by: Fred 2009-02-22 |
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